Kuznets Definition Of Economic Growth

Such comprehensive data kuznets maintains in which significantly different elements are distinguished and measured are indispensable both for observations and analysis of the essentially quantitative process of economic growth and for the search for the general and variant characteristics of this growth.

Kuznets definition of economic growth. The hypothesis was first advanced by economist simon kuznets in the 1950s and 1960s. In economics a kuznets curve graphs the hypothesis that as an economy develops market forces first increase and then decrease economic inequality. One explanation of such a progression suggests that early in development investment opportunities for those who have money multiply while an influx of cheap rural labor to the cities holds down wages. A country s economic growth may be defined as a long term rise in capacity to supply increasingly diverse economic goods to its population this growing capacity based on advancing technology and the institutional and ideological adjustments that it demands.

Kuznets was awarded by the sveriges riksbank prize in economic sciences in memory of alfred nobel in 1971 for his empirically founded. The kuznets curve is a hypothetical curve that graphs economic inequality against income per capita over the course of economic development which was presumed to correlate with time. Kuznets s final task for the bureau was a monograph that integrated the various sectoral studies into an integrated overview of the marshaling of capital for economic growth. Kuznets looks at family units adjusted for family size he wants to get a grasp of the entire income distribution rather than just segments of it wherever possible he wants to leave aside cases where the primary earner in a family is either in school or retired he wants to look at national income earned by individuals excluding capital gains and he wants to try to infer trends in secular income rather than annual levels of income which fluctuate more in response to disturbances.

With his obligations to the nber complete he turned to his project on comparative long term growth. He set the standard for. All three components of the definition are important. In his historical and economic studies of the 1970s kuznets expressed the idea of an interaction between science and technology innovations and institutional shifts as well as the role of factors external to the economy such as those caused by the moral and political climate in society and their impact on the progress and results of economic growth.

Capital in the american economy.